Multistate Professional Responsibility Exam Practice Question
Attorney Johnson is representing a client in a personal injury case against a construction company. Recently, Johnson invested in a third-party litigation funding company that provides financial backing to plaintiffs in similar personal injury cases, including those against construction companies. Which of the following actions is most appropriate for Attorney Johnson to take to comply with professional responsibility rules?
Consider not addressing the investment since it does not directly involve her current client’s case.
Seek permission from the court to disclose her investment while representing the client.
Sell her investment in the litigation funding company to address any potential conflicts of interest.
Inform her client about her investment in the litigation funding company and evaluate whether it affects her representation.
Informing the client about the investment and evaluating its impact ensures transparency and maintains the integrity of the representation. This approach allows Attorney Johnson to address any potential conflicts ethically. Selling the investment without evaluation may be premature, considering the actual impact is not yet assessed. Considering not addressing the investment disregards ethical obligations, and seeking court permission is not the standard procedure for managing such financial interests.
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Multistate Professional Responsibility Exam
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